Architecture

The iBTC architecture bridges Bitcoin with other chains securely and efficiently, offering a transparent and verifiable process that eliminates intermediaries from the cross-chain bridging equation.

Unlike other wrapped Bitcoin solutions, such as wBTC, iBTC’s architecture is fully automated, making transactions 3-10 times faster. Furthermore, automation eliminates overhead costs, making iBTC cheaper by 25-50%.

Minting iBTC

Vault Creation on Destination Chain: A merchant initiates the process by creating a vault object on the destination chain (Ethereum, Arbitrum, XRPL, etc.) and receives a unique ID for this vault.
BTC Deposit Transaction: A Bitcoin Partially Signed Bitcoin Transaction (PSBT) is generated for depositing into the self-custodial iBTC network. The Bitcoin is locked into a 2-of-2 multisig between the merchant and the iBTC decentralized Attestor network, linked to the unique vault ID (Vault UUID).
Attestor Relays: Attestors independently verify the transaction, ensuring its correctness and verifying the amount. If the vault is new or empty, attestors broadcast the transaction. If the vault already holds Bitcoin collateral, attestors use a threshold signature flow (FROST) to combine the old and new deposit into a new transaction, which is then broadcast. Each vault is represented by exactly one Bitcoin transaction at any given time.
ERC20 Token Issuance: Once enough Bitcoin confirmations are received, attestors perform another threshold signing flow for the destination chain. With sufficient attestor agreement, they sign a transaction minting the iBTC token on the destination chain, directly owned by the merchant.

Redeeming Bitcoin from iBTC

Token Redemption: To redeem Bitcoin, the user initiates the burn process, returning iBTC to the source.
The Execution Phase: The merchant signs a PSBT to send some or all Bitcoin from the vault transaction back to their wallet, with any remainder sent to a new vault transaction. Attestors verify and sign this transaction, broadcasting it, and the Bitcoin is returned to the merchant's wallet.

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Last updated 8 days ago

Minting iBTC

Vault Creation on Destination Chain: A merchant initiates the process by creating a vault object on the destination chain (Ethereum, Arbitrum, XRPL, etc.) and receives a unique ID for this vault.

BTC Deposit Transaction: A Bitcoin Partially Signed Bitcoin Transaction (PSBT) is generated for depositing into the self-custodial iBTC network. The Bitcoin is locked into a 2-of-2 multisig between the merchant and the iBTC decentralized Attestor network, linked to the unique vault ID (Vault UUID).

Attestor Relays: Attestors independently verify the transaction, ensuring its correctness and verifying the amount. If the vault is new or empty, attestors broadcast the transaction. If the vault already holds Bitcoin collateral, attestors use a threshold signature flow (FROST) to combine the old and new deposit into a new transaction, which is then broadcast. Each vault is represented by exactly one Bitcoin transaction at any given time.

ERC20 Token Issuance: Once enough Bitcoin confirmations are received, attestors perform another threshold signing flow for the destination chain. With sufficient attestor agreement, they sign a transaction minting the iBTC token on the destination chain, directly owned by the merchant.

Redeeming Bitcoin from iBTC

Token Redemption: To redeem Bitcoin, the user initiates the burn process, returning iBTC to the source.

The Execution Phase: The merchant signs a PSBT to send some or all Bitcoin from the vault transaction back to their wallet, with any remainder sent to a new vault transaction. Attestors verify and sign this transaction, broadcasting it, and the Bitcoin is returned to the merchant's wallet.